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Act now to prevent 'retirement crisis' in Canada: CLC

With millions of Canadians unprepared for retirement, the Canadian Labour Congress is spearheading a drive to make increasing Canada Pension Plan benefits a major federal election issue in 2015.
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With millions of Canadians unprepared for retirement, the Canadian Labour Congress is spearheading a drive to make increasing Canada Pension Plan benefits a major federal election issue in 2015.
With millions of Canadians unprepared for retirement, the Canadian Labour Congress is spearheading a drive to make increasing Canada Pension Plan benefits a major federal election issue in 2015.

Paul Moist, the president of the Canadian Union of Public Employees, said employers are increasingly reluctant to offer workers their own pension plans. And younger workers often don't participate in voluntary plans because they are focused on paying their bills, first.

“There are about 18 million workers in Canada, 65 per cent of whom don't have a workplace pension plan and are kind of marching toward retirement without a plan in place,” Moist said. “The Canada Pension Plan is a very good pension plan, it's well run, but it's inadequate and provides only a limited amount of income replacement.”

Moist was in Sudbury this week to promote the CLC's Retirement Security for Everyone campaign. He spoke at a town hall meeting Tuesday night in Greater Sudbury, along with other labour and social action groups.

“Retirement security is a national issue,” he said. “If we don't create a system that allows people to save, they will ultimately become the responsibility of all of us, if they can't work and they can't sustain themselves.”

The CLC wants CPP pension benefits gradually doubled, with employee and employer contributions to the plan increased over time. While older workers wouldn't see the full benefits, he said now is the time to bring in reforms that will help new workers.

“I'm 58 years old, so this will not help me,” he said. “This is really for the younger generation. Most new jobs nowadays, most people starting out, do not have a workplace pension plan.

“This is the generation that, if measures aren't taken, will for sure retire with insufficient funds.”

The CLC has conducted opinion polls that asked whether people would be willing to pay higher pension premiums in exchange for improvements in CPP. Moist said they found the idea is popular with Canadians, with more than 75 per cent in favour, including 80 per cent of those polled in Ontario.

Liberal Premier Kathleen Wynne campaigned on bringing in an Ontario-only pension plan in the June election, but has said she would prefer the federal government improve CPP, rather than the province acting on its own. But Prime Minister Stephen Harper has refused, Moist said.

And in a debate in Greater Sudbury this week, a candidate for the provincial leadership of the Progressive Conservative Party called Wynne's plan a “job killer.”

Barrie MP Patrick Brown said the Liberal plan would discourage existing and new businesses from opening or expanding in the province.

“If you're looking at building a manufacturing plant in Ontario in the years ahead, one thing that's going to be on your radar is this proposed job-killing pension tax,” Brown said. “It is not in the best interest of Ontario. I think that's something that, as a party, we need to fight tooth-and-nail.”

But Moist said the last time pension contributions were significantly increased in the 1990s, it didn't hurt the economy. While the increases were necessary because the plan was not sustainable with the crush of Baby Boomers headed for retirement, he said employers and employees were able to absorb the higher premiums.

“There was no detrimental effect on the economy – most people didn't really notice it,” he said. “It's going to cost people a few more dollars per month — basically the price of a couple of coffees a week … If you have to pay a little bit more, it's a small price to pay for security in your retirement years.”

He said eight of 10 provinces are on record as supporting it, along with federal NDP Leader Thomas Mulcair.

“And we're not sure where (Liberal Leader) Justin Trudeau is coming from … But over a lifetime of work – 35 or 40 years – we can create a plan that provides pension options for people.”

In total, the CLC is holding 14 town halls across Canada in November and December in its effort to make pensions a top-of-mind issue in next fall's election, Moist said.

“We want to make sure pensions are talked about in every town hall meeting,” he said. “When someone knocks on your door asking for your vote in the election, ask them where they stand on pensions for all.

“Voluntary schemes are not working. And nobody should be working today and not preparing for retirement, no matter what your age.”

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Darren MacDonald

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